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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 28
Calculating and Using a Single Charging Rate
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:
Fixed costs (salaries, tools): $64,900 per year
Variable costs (supplies): $1.35 per maintenance hour
Estimated usage by:
Actual usage by:
Required:
1. Calculate a single charging rate for the Maintenance Department.
2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.
3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:
Fixed costs (salaries, tools): $64,900 per year
Variable costs (supplies): $1.35 per maintenance hour
Estimated usage by:
Actual usage by:
Required:
1. Calculate a single charging rate for the Maintenance Department.
2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.
3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Explanation
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Manufacturing overheads: Costs that are ...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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